Sky Deutschland AG / Key word(s): Final Results/Corporate Action
02.02.2012 07:33
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.
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NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR TRANSMISSION, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES
Sky Deutschland surpasses 3 million customers
Additional financing of EUR300 million fully backstopped by News
Corporation to support continued growth and further product innovation
Full year performance
- 3,012,000 customers at the end of 2011
- Net customer growth of 359,000, the highest figure in Sky's history
- Gross additions of 671,000, up 12%
- Churn down to 11.0% from 16.2% in 2010
- Revenues up 17% to EUR1,139 million*
- EBITDA improved 42% to negative EUR155 million*
- Average ARPU increased by EUR1.77 to EUR30.46*
- Sky Premium HD customers at 974,000, up 64%
- Sky+ customers at 411,000, up from 39,000 in 2010
- Sky Go with 594,000 active users
Q4 highlights
- Net customer growth of 155,000, up 18% year-on-year
- Gross additions of 246,000, up 18% year-on-year
- Quarterly annualized churn at 12.4%
- Q4 ARPU increased to EUR31.29*
- Breaking the 10 million viewer mark for the first time
- Sky Sport News HD attracts 1.6 million unique viewers in its first
month
- Customer recommendation and satisfaction levels at all-time highs
Additional financing
- New financing to raise EUR300 million, fully backstopped by News
Corporation
- Further investments to be focused on core areas of content, innovation
and customer service
Outlook
- Full year 2012 EBITDA expected to be significantly better than 2011.
2013 full year EBITDA expected to be positive
Unterföhring, 2 February 2012. Sky Deutschland delivered strong growth in
2011 to reach 3,012,000 customers by year's end. In total the company grew
by 359,000 customers, almost twice the net growth of 2010 (183,000), and
the highest net growth in the company's history. Gross additions in 2011
amounted to 671,000 representing a 12% increase compared to the previous
year (599,000). Customer loyalty continued to strengthen with the 12-month
rolling churn rate decreasing to 11.0% (Q4 2010: 16.2%).
Sky's Premium HD service continued to grow strongly with customer take-up
increasing by more than 60% to 974,000 (2010: 593,000). At the end of 2011,
a total of 32% of all Sky customers subscribed to Sky Premium HD.
Sky+, the integrated digital video recorder (DVR), which enables viewers to
take control of their TV viewing, also saw considerable demand. By the end
of 2011, there were 411,000 Sky+ customers, a more than tenfold increase
compared to the 39,000 who took the service at the previous year's end.
With the launch of Sky Go in April 2011, Sky set a new benchmark for
innovation, providing customers with greater flexibility and convenience to
watch live and on-demand TV via the web, iPad, iPhone and Xbox 360. In just
nine months Sky Go has gained 594,000 active users, and achieved over
4 million unique viewer sessions in Q4 alone.
The continued customer growth and increasing demand for Sky products and
services are reflected in the improving financial performance of Sky
Deutschland. In 2011 revenues increased by 17% to EUR1,139 million* (2010:
EUR977m). EBITDA improved by 42% to negative EUR155 million* (2010:
negative EUR269m). The average revenue per user (ARPU) further increased by
EUR1.77 to EUR30.46* (2010: EUR28.68).
Additional financing for continued growth and further product innovation
In order to support the positive trends seen over the past six consecutive
quarters, Sky Deutschland plans to raise gross proceeds of EUR300 million
in 2012. The additional funding will enhance Sky's flexibility as well as
enabling continued investments in the three core areas which fundamentally
improve customer satisfaction and drive subscriber and ARPU growth:
high-quality and exclusive content, new and exciting innovations, and
outstanding customer service.
Among others, Sky plans to strengthen its exclusive content across all
categories, including the further growth of its market-leading HD service
from currently 42 channels to over 60. With regard to innovations, Sky will
enhance its Sky+ DVR with new features like remote record capability as
well as introducing a two-terabyte hard disk option. As the accelerating
take-up of its DVR is an attractive opportunity for the business, Sky
intends this year to more than double the penetration of Sky+. Other
innovations planned include: extending movies to Sky Go customers via the
iPhone, launching dedicated children's programming on Sky Anytime and Sky
Go, introducing more interactive and social elements to Sky Sport News HD
and activating the over one million next generation hybrid set-top boxes
which are already in customer homes. In the area of customer service, Sky
will further invest in technology, processes and people, including the
establishment of a new in-house call centre to respond to the strong demand
for its products while providing even better customer service.
The funding will be raised in a two-step process. By the end of March 2012,
Sky expects proceeds of a minimum of EUR100 million either through a rights
offering, a private placement (maximum of up to 10% of registered shares),
a shareholder loan or a combination of these measures. The remaining
proceeds to reach an aggregate of EUR300 million by the end of September
2012 are planned through any or a combination of the measures mentioned
above, and/or along with a potential convertible bond offering. In the
event that a convertible bond is issued, the total funding amount will be
increased by the amount of interest payable on the bond from the date of
issue until 31 December 2013. Sky Deutschland and News Corporation will
agree on the nature, terms and size of the planned financing measures in
due course.
News Adelaide Holdings, a fully owned indirect subsidiary of News
Corporation has agreed to fully backstop these financing measures. The
financing measures will be structured such that News Corporation's
shareholding in Sky Deutschland will not increase from its current position
of 49.9% unless News Corporation elects to do so. A shareholder loan, if
chosen, will be at a 14% coupon payable in kind with a maturity date of
March 2014. The backstop is subject to certain customary conditions such as
the absence of a material adverse change in Sky's business.
Sky Deutschland has asked its lending bank syndicate to waive the mandatory
prepayment from the proceeds of the planned capital measures and to adjust
financial covenants in its credit facilities to reflect the financing
measures and the increased investments. Discussions about a refinancing of
the existing credit facilities have been initiated and will be addressed in
due course. The two largest lenders to Sky Deutschland have already
consented to the waiver and the amendments to the facilities. The formal
consent of the full lender group is expected in the next few weeks. Except
for these and some other technical amendments the existing credit
facilities of EUR525 million remain unchanged. They consist of two term
loans amounting to EUR275 million in aggregate, a revolving credit facility
of EUR125 million and a guarantee facility of EUR125 million with a
maturity between June and December 2013. The existing shareholder loans in
the total amount of EUR106 million, as well as the existing convertible
bond remain unchanged.
Contact for press: Contact for investors and analysts:
Dr. Jörg E. Allgäuer Christine Scheil
Vice President Corporate Communications Vice President Investor Relations
Tel.: +49 89/99 58-63 77 Tel.: +49 89/99 58-10 10
joerg.allgaeuer@sky.de christine.scheil@sky.de
Investor/analyst and press call today at 9:30 am. Press call today at 11:00
am
Q4 and full year 2011 results publication planned on 23 February 2012
These materials may not be released, published, distributed or transmitted
in the United States. These materials do not constitute an offer of
securities for sale or a solicitation of an offer to purchase securities of
Sky Deutschland AG (the 'Company') in the United States, Germany or any
other jurisdiction. The Securities of the Company may not be offered or
sold in the United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended (the
'Securities Act'). The Securities of the Company have not been, and will
not be, registered under the Securities Act.
This release contains statements regarding future developments that are
based on current evaluations and are made to the best knowledge of the
management of Sky Deutschland AG. Such statements with regard to future
developments are subject to known and unknown risks, uncertainties and
other factors that could cause the profit situation, profitability, value
development or the performance of Sky Deutschland AG or the success of the
media industry to diverge from the profit situation, profitability, value
development or performance that are expressly or implicitly assumed or
described in the statements concerned. In view of the risks and
uncertainties and other factors, readers of this press release should not
rely on such statements to a disproportionate extent. Sky Deutschland AG
has no obligation to act in keeping with such statements regarding future
developments or to alter its actions to accommodate future events and
developments.
02.02.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Sky Deutschland AG
Medienallee 26
85774 Unterföhring
Germany
Phone: +49 (0)89 9958-02
Fax: +49 (0)89 9958-6239
E-mail: ir@sky.de
Internet: info.sky.de
ISIN: DE000SKYD000
WKN: SKYD00
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Sky Deutschland AG: Sky Deutschland surpasses 3 million customers Additional financing of EUR300 million fully backstopped by News Corporation to support continued growth and further product innovation
| Source: EQS Group AG